On the Market

Boerum Hill Condo Property on the Market for $7.5M

401 State Street

401 State Street.

A seven unit, 16,250-square-foot condominium development at 401 State Street in Brooklyn’s leafy Boerum Hill neighborhood has hit the market with an asking price of $7.5 million, Commercial Observer has learned.

Brooklyn developer Martin Handler plans to convert the existing three-story, residential-zoned building that once housed a substance abuse home into luxury apartments with a possible daycare facility or other community use in the basement, said TerraCRG partner Melissa DiBella.

“There’s been such a need for condos, and there’s such a need for luxury condos for bigger families,” said Ms. DiBella, who is marketing the property. “Every unit has outdoor space. He made these more like homes.”

Ms. DiBella and others at the Brooklyn-only commercial brokerage and advisory firm say properties like this brick condo on a tree-lined brownstone street will be attractive in a borough market where only 10 percent out of 13,000 residential units currently in construction are condos and units at The Pierhouse development at Brooklyn Bridge Park are selling for over $2,200 per square foot.

“When you’re looking at the Downtown Brooklyn market as a whole, it’s such an important topic,” said Ms. DiBella. “The ones that are on the market are selling very quickly.”

Mr. Handler purchased the property for $4.2 million last year, according to property records. Daytop Village Foundation, the previous owner of the building, filed for bankruptcy in 2012 after the nonprofit absorbed $28.2 million in losses over a four-year period, according to a release from the organization.

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